CFA CFA Level 1 EAR on the calculator

EAR on the calculator

  • This topic has 3 replies, 3 voices, and was last updated Apr-17 by Snippy.
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  • Snippy
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    I didn’t understand what the empty boxes are supposed to be. Can someone clarify this process please?

    Thanks!

    vincentt
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    This might not follow the sequence of your screen grab but it does the same thing.

    1.
    [2nd] + [ICONV]
    You should see “NOM” which is the nominal rate, key in 10 and press [ENTER].

    2. press arrow down twice till you see C/Y
    type in 12 and press [ENTER] (that’s amount of times to compound a year)

    3. press arrow UP to “EFF”.

    That’s the effective rate, press CPT to get the EAR.

    Swift
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    The blanks are for the arrow keys. In your example Nom = 10, C/Y = 12 and then you compute EFF. Its probably just as quick to work it out though.

    Snippy
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    Got it. Thanks @vincentt & @Swift 😀

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